Legislators seek answers on disallowed Medicare payments
BATON ROUGE, LA (WAFB) -
A House committee grilled members of
the Jindal administration Monday morning on why more than $300 million of
Medicaid payments have been disallowed.
The Center for Medicaid/Medicare Service,
or CMS, notified Louisiana officials on Friday that part of the state's contract
with those providers does not follow normal and customary business practices.
It specified the practice of advanced
lease payments to the hospitals. Those payments total $307 million in Medicaid
The committee wants to know who is
"If this does not fall in line
with what you are saying, you're saying we don't, that it does not affect our
budget this year, it doesn't affect our budget next year, but it might
possibly affect some payback in 16," said state Rep. Pat Smith, D-Baton
Rouge. "Is that what you are saying?"
"Yes ma'am," replied Kristi Nichols,
commissioner of administration.
"So we are going to hold you to that
Ms. Nichols," Smith added.
State officials said they are
negotiating with CMS to resolve the problem.